Decentralization refers to the process of distributing or dispersing power, authority, functions, and responsibilities from a central authority to local or regional levels of government. It involves transferring decision-making powers, resources, and administrative responsibilities closer to the citizens and communities affected by those decisions. Decentralization aims to make governance more efficient, responsive, and accountable by involving local institutions and communities in the decision-making process.
Decentralization can take various forms:
Political Decentralization: Empowers local government bodies, such as municipalities or panchayats, by granting them the authority to make decisions that affect their constituents. It promotes democratic participation by allowing local governments to elect their representatives.
Administrative Decentralization: Transfers responsibilities for planning, financing, and managing public functions from central government agencies to local government units or agencies. This can improve the quality of public services by making them more responsive to local needs.
Fiscal Decentralization: Involves the transfer of financial resources and authority to raise revenues from the central government to lower levels of government. It provides local governments with the autonomy to manage their budgets and allocate resources according to local priorities.
Decentralization aims to enhance democratic governance, improve public service delivery, promote local development, and increase transparency and accountability. However, it also presents challenges, such as the potential for local corruption, disparities in capacity among local governments, and coordination issues between different levels of government.
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